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Prof. Heba Handoussa
Prepared for ‘Food Secure Arab World’ Conference
                  6 February 2012
           IFPRI-ESCWA Beirut, Lebanon



                                                   1
Political Economy of Revolution
Youth are Egypt’s Agents of Change
Youth Aspirations and Well-Being
Breaking the Land Constraint
Geographic Targeting for Social Justice
Revisiting Agriculture
Entrepreneurship for Off-farm Employment


                                           2
Challenges to Egypt’s Welfare State
 Paradigm shift towards social justice implies change in social contract
 Social policy should not be just about the poor but for everyone
 Unifying laws on social protection to integrate the rich and poor
 Remarkable deterioration in content and substance of social services because
    of lack of review, innovation and budget
   Lack of democracy and citizen empowerment via participation also
    responsible for deterioration
   The need to regain trust between the citizen and state and across all
    segments of society
   Reviewing the incentive structure including the merit system of civil service
   Restructuring Budget in line with social, sectoral, and regional priorities
   The culture of tolerance
   The culture of gender parity

                                                                               3
Weaknesses of Civil Society

 Absence of the ‘how-to-do’ of collective action of
  CSOs for organization and consensus on demands
 Constraints and bottlenecks related to NGO Law
 Lack of experience in facilitating building of platform
  by professionals, workers or farmer unions
 Insufficient transparency and accountability on the
  part of central or local formal government institutions
 Absence of administrative, fiscal and political
  decentralization

                                                            4
Youth Aspiration and Well-Being
 Youth Well-Being Index : Mapping of levels and severity of youth deprivation;
  progress in access to education, health, income, gender, employment, civic
  participation, family life, leisure, and security
 Youth Vision:
    Establishing the culture of participation among youth through
     educational institutions, civil society organizations and media;
    Expanding programs of political education and developing programs on
     leadership skills;
    Cease to intimidating youth to express their opinions or engage in political
     activity. Also, cease to exert surveillance on bloggers and arrest them;
    Activating secular forums and platforms for the integration of youth in
     socio-political life so as to enhance their sense of belonging, loyalty and
     citizenship. This is meant to cope with the religious polarization of society
     resulted in part from youth tendency to participate in religious institutions,
     which eventually promotes religious loyalty at the expense of citizenship.
                                                             Source: EHDR 2010
                                                                               5
Key messages of the EHDR 2010 - Youth
 Young people are the best candidates to act as agents of change to reclaim Egypt’s
  traditional cultural norm of tolerance and respect of the other. Need to reform school
  curricula so as to instill ethics, problem-solving, entrepreneurship, and innovation

 Introduce channels of youth participation at the community level in both volunteerism
  and in governance to ensure a return to a merit-based Human Resource Management
  System, away from nepotism, patronage, and ‘wasta.’

 Job creation for youth can be accelerate by (i) state contribution to social security
  payment for youth; (ii) national program for jobs targeting the MDG objectives and
  indicator; (iii) State support for temporary migration under negotiated terms

 Distributive justice and good economic fundamentals would support the adoption of a
  national scheme ‘Project Land’ that distributes parcels of land to youth in Egypt’s new
  regions, to be used in value-adding activities.

                                                                                          6
Breaking the Land Constraint

 A national scheme, ‘project land’ proposes the distribution of parcels of land
  to youth in Egypt‘s new regions such as the desert fringes (zaheer sahrawi),
  along the Nile Valley, the coastlines, and new cities and urban developments.

 The conditions are that youth beneficiaries will settle the lands and engage in
  innovative projects in small-scale tourism, eco-friendly agriculture, and other
  high value-added activities such as ICT, transport, housing, and all social
  services

 Entrepreneurship needs to start from ownership of some asset in addition to
  human capital and providing youth with physical capital assets will thus open
  new avenues of employment and prosperity; the purpose is to introduce a key
  element that caters both for distributive justice and for good investment
  fundamentals.

                                                                                    7
Three Proposed Areas of Action for Youth Empowerment
1.   Economic Empowerment
   a) Development by Franchising
   b) Training and Skill Formation
   c) Women Leadership of NGOs (for women to claim their right to
        increased political and economic participation)
2. Social Marketing for Youth Development
   a) Social Marketing and the Media
   b) Volunteerism
   c) Youth Monitoring and Good Governance
3. A Youth Knowledge Society
   a) Software Development
   b) Language Skills
   c) Education/Employability

                                                                    8
Geographic Targeting for Social Justice
 While around 59% of Egypt’s total youth live in rural areas, they
    account for 85% of Egypt’s poor youth.
   Only 37.5% of rural Egyptians have access to sanitation compared to
    89.8% urban Egyptians.
   In terms of literacy (15+), 20% of urban, versus 40% of rural,
    Egyptians are illiterate. Rural Upper Egypt even worse.
   80% of illiteracy (17% of Egypt’s youth) and early school attrition can
    be attributed to poverty and gender bias in rural areas.
   Almost 95% of Egypt’s poorest villages are located in Upper Egypt.
   While this region represents 25% of total population, its share in the
    extreme poor is almost 66%.
   Women account for 35% of agricultural sector labor force, compared
    to a female national workforce average of only 24%.

                                                                              9
Challenges Facing Agriculture
Agriculture in Egypt accounts for 13% of GDP and 30% of employment.
Challenges include:
 Low water use efficiency due to high water losses
 Agricultural research and technology transfer are less than potential.
 Increased fragmentation and scattering of agricultural holdings
 Deteriorating land efficiency and environmental degradation
 Food safety regulations and food standards
 Nutrition and changing dietary practices for Egypt’s food security.
 Lack of coordination among policy makers in food security sector.
 Farm incomes account for about 25-40% of total rural income, agricultural
  related off-farm incomes account for an additional 20-35%, and non-farm
  revenues and wages account for about 40% of rural household incomes.
 Weak rural Civil Society and Cooperative systems to support small farmers

                                                                              10
Egypt’s Agricultural Strategy to 2030:
 Sustainable use of natural agricultural resources with emphasis on enhancing
    water-use efficiency in irrigated agriculture
   Increasing the productivity of both land and water units
   Raising the degree of food security in strategic food commodities
   Increasing competitiveness of agri products in local and international markets
   Improving the business climate for agricultural investment
   Improving the living standards of the rural inhabitants, and reducing poverty

THE NEED IS TO HAVE A MORE INTEGRATED STRATEGY SUCH AS THE
  WB/FAO/IFAD THREE PILLARS: 1) strengthening safety nets, promoting greater
  access to family planning services and to education; 2) enhancing domestic
  food supply and rural livelihoods through increased investment in research and
  development, and 3) reducing vulnerability by improving supply chain
  efficiency and by more effectively using financial instruments such as options
  and futures to hedge risk (Improving Food Security in Arab Countries, 2009)
                                                                               11
Proposal of Egypt Network for Integrated Development (ENID)
Activity C1: Enhancing Agricultural Productivity
 Policy Analysis Matrix (PAM) for assessing comparative advantage of crops, livestock products
   and fisheries under different farming systems, irrigation method, & farm size in Upper Egypt
 Develop projects that can provide a sustainable supply of agricultural inputs
 Pilot project for high productivity agricultural techniques adapted to desert areas.
Activity C2: Improve and Stabilize Rural Household Food Security and Employment
 Develop Integrated Organic Farming including pilot projects for recycling of agri residues.
 Pilot projects for use of non-conventional water in agriculture expansion, including treated
   wastewater and innovative financing mechanisms such as Public/Private Partnership (PPP).
 Offer environmentally sustainable development plans.
Activity C3: Policy and Institutional Reform
 Revise legal and regulatory framework for rural cooperatives
 Revise legal and regulatory framework to ensure contract enforcement
 Revise agricultural insurance legal framework
 Links to wider macroeconomic context & implications on inflation and balance of payments.
 Study the role of the banking sector in helping improve agricultural productivity.
                                                                                          12
Entrepreneurship for Off-Farm Employment (ENID)

 Design and deliver programs to assist MSME cluster development.
 Create cluster-oriented linkages between villages and non-farm activities in
    markaz, closest city or town.
   Deliver a number of commercial and social franchises for young
    entrepreneurs, including existing successful businesses, as well as
    innovative goods & services introduced by ENID market research.
   Address barriers to female entrepreneurship and design incentives.
   Introduce training programs and skills development targeting youth in
    selected sub-sectors.
   Upgrade microfinance, BDS and training systems.
   Develop a guideline for technical and institutional needs to enhance
    scaling-up successful models of civil society organizations serving MSMEs.
                                                                           13
Thank You



            14

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Keynote heba handoussa

  • 1. Prof. Heba Handoussa Prepared for ‘Food Secure Arab World’ Conference 6 February 2012 IFPRI-ESCWA Beirut, Lebanon 1
  • 2. Political Economy of Revolution Youth are Egypt’s Agents of Change Youth Aspirations and Well-Being Breaking the Land Constraint Geographic Targeting for Social Justice Revisiting Agriculture Entrepreneurship for Off-farm Employment 2
  • 3. Challenges to Egypt’s Welfare State  Paradigm shift towards social justice implies change in social contract  Social policy should not be just about the poor but for everyone  Unifying laws on social protection to integrate the rich and poor  Remarkable deterioration in content and substance of social services because of lack of review, innovation and budget  Lack of democracy and citizen empowerment via participation also responsible for deterioration  The need to regain trust between the citizen and state and across all segments of society  Reviewing the incentive structure including the merit system of civil service  Restructuring Budget in line with social, sectoral, and regional priorities  The culture of tolerance  The culture of gender parity 3
  • 4. Weaknesses of Civil Society  Absence of the ‘how-to-do’ of collective action of CSOs for organization and consensus on demands  Constraints and bottlenecks related to NGO Law  Lack of experience in facilitating building of platform by professionals, workers or farmer unions  Insufficient transparency and accountability on the part of central or local formal government institutions  Absence of administrative, fiscal and political decentralization 4
  • 5. Youth Aspiration and Well-Being  Youth Well-Being Index : Mapping of levels and severity of youth deprivation; progress in access to education, health, income, gender, employment, civic participation, family life, leisure, and security  Youth Vision:  Establishing the culture of participation among youth through educational institutions, civil society organizations and media;  Expanding programs of political education and developing programs on leadership skills;  Cease to intimidating youth to express their opinions or engage in political activity. Also, cease to exert surveillance on bloggers and arrest them;  Activating secular forums and platforms for the integration of youth in socio-political life so as to enhance their sense of belonging, loyalty and citizenship. This is meant to cope with the religious polarization of society resulted in part from youth tendency to participate in religious institutions, which eventually promotes religious loyalty at the expense of citizenship. Source: EHDR 2010 5
  • 6. Key messages of the EHDR 2010 - Youth  Young people are the best candidates to act as agents of change to reclaim Egypt’s traditional cultural norm of tolerance and respect of the other. Need to reform school curricula so as to instill ethics, problem-solving, entrepreneurship, and innovation  Introduce channels of youth participation at the community level in both volunteerism and in governance to ensure a return to a merit-based Human Resource Management System, away from nepotism, patronage, and ‘wasta.’  Job creation for youth can be accelerate by (i) state contribution to social security payment for youth; (ii) national program for jobs targeting the MDG objectives and indicator; (iii) State support for temporary migration under negotiated terms  Distributive justice and good economic fundamentals would support the adoption of a national scheme ‘Project Land’ that distributes parcels of land to youth in Egypt’s new regions, to be used in value-adding activities. 6
  • 7. Breaking the Land Constraint  A national scheme, ‘project land’ proposes the distribution of parcels of land to youth in Egypt‘s new regions such as the desert fringes (zaheer sahrawi), along the Nile Valley, the coastlines, and new cities and urban developments.  The conditions are that youth beneficiaries will settle the lands and engage in innovative projects in small-scale tourism, eco-friendly agriculture, and other high value-added activities such as ICT, transport, housing, and all social services  Entrepreneurship needs to start from ownership of some asset in addition to human capital and providing youth with physical capital assets will thus open new avenues of employment and prosperity; the purpose is to introduce a key element that caters both for distributive justice and for good investment fundamentals. 7
  • 8. Three Proposed Areas of Action for Youth Empowerment 1. Economic Empowerment a) Development by Franchising b) Training and Skill Formation c) Women Leadership of NGOs (for women to claim their right to increased political and economic participation) 2. Social Marketing for Youth Development a) Social Marketing and the Media b) Volunteerism c) Youth Monitoring and Good Governance 3. A Youth Knowledge Society a) Software Development b) Language Skills c) Education/Employability 8
  • 9. Geographic Targeting for Social Justice  While around 59% of Egypt’s total youth live in rural areas, they account for 85% of Egypt’s poor youth.  Only 37.5% of rural Egyptians have access to sanitation compared to 89.8% urban Egyptians.  In terms of literacy (15+), 20% of urban, versus 40% of rural, Egyptians are illiterate. Rural Upper Egypt even worse.  80% of illiteracy (17% of Egypt’s youth) and early school attrition can be attributed to poverty and gender bias in rural areas.  Almost 95% of Egypt’s poorest villages are located in Upper Egypt.  While this region represents 25% of total population, its share in the extreme poor is almost 66%.  Women account for 35% of agricultural sector labor force, compared to a female national workforce average of only 24%. 9
  • 10. Challenges Facing Agriculture Agriculture in Egypt accounts for 13% of GDP and 30% of employment. Challenges include:  Low water use efficiency due to high water losses  Agricultural research and technology transfer are less than potential.  Increased fragmentation and scattering of agricultural holdings  Deteriorating land efficiency and environmental degradation  Food safety regulations and food standards  Nutrition and changing dietary practices for Egypt’s food security.  Lack of coordination among policy makers in food security sector.  Farm incomes account for about 25-40% of total rural income, agricultural related off-farm incomes account for an additional 20-35%, and non-farm revenues and wages account for about 40% of rural household incomes.  Weak rural Civil Society and Cooperative systems to support small farmers 10
  • 11. Egypt’s Agricultural Strategy to 2030:  Sustainable use of natural agricultural resources with emphasis on enhancing water-use efficiency in irrigated agriculture  Increasing the productivity of both land and water units  Raising the degree of food security in strategic food commodities  Increasing competitiveness of agri products in local and international markets  Improving the business climate for agricultural investment  Improving the living standards of the rural inhabitants, and reducing poverty THE NEED IS TO HAVE A MORE INTEGRATED STRATEGY SUCH AS THE WB/FAO/IFAD THREE PILLARS: 1) strengthening safety nets, promoting greater access to family planning services and to education; 2) enhancing domestic food supply and rural livelihoods through increased investment in research and development, and 3) reducing vulnerability by improving supply chain efficiency and by more effectively using financial instruments such as options and futures to hedge risk (Improving Food Security in Arab Countries, 2009) 11
  • 12. Proposal of Egypt Network for Integrated Development (ENID) Activity C1: Enhancing Agricultural Productivity  Policy Analysis Matrix (PAM) for assessing comparative advantage of crops, livestock products and fisheries under different farming systems, irrigation method, & farm size in Upper Egypt  Develop projects that can provide a sustainable supply of agricultural inputs  Pilot project for high productivity agricultural techniques adapted to desert areas. Activity C2: Improve and Stabilize Rural Household Food Security and Employment  Develop Integrated Organic Farming including pilot projects for recycling of agri residues.  Pilot projects for use of non-conventional water in agriculture expansion, including treated wastewater and innovative financing mechanisms such as Public/Private Partnership (PPP).  Offer environmentally sustainable development plans. Activity C3: Policy and Institutional Reform  Revise legal and regulatory framework for rural cooperatives  Revise legal and regulatory framework to ensure contract enforcement  Revise agricultural insurance legal framework  Links to wider macroeconomic context & implications on inflation and balance of payments.  Study the role of the banking sector in helping improve agricultural productivity. 12
  • 13. Entrepreneurship for Off-Farm Employment (ENID)  Design and deliver programs to assist MSME cluster development.  Create cluster-oriented linkages between villages and non-farm activities in markaz, closest city or town.  Deliver a number of commercial and social franchises for young entrepreneurs, including existing successful businesses, as well as innovative goods & services introduced by ENID market research.  Address barriers to female entrepreneurship and design incentives.  Introduce training programs and skills development targeting youth in selected sub-sectors.  Upgrade microfinance, BDS and training systems.  Develop a guideline for technical and institutional needs to enhance scaling-up successful models of civil society organizations serving MSMEs. 13
  • 14. Thank You 14